Vertex Q1 Revenue Up 11.1% to $196.6M; Cloud Sales Soar 20.7%
Vertex reported Q1 revenue of $196.6 million, up 11.1% year-over-year, with cloud revenues climbing 20.7% to $96.8 million and adjusted EBITDA rising to $44.1 million from $37.2 million. The company acquired AI-first e-invoicing startup Brinta to expand Latin America coverage and launched a Value Creation Plan projected to save $60–70 million annually from 2027, raising full-year adjusted EBITDA guidance to $202–208 million.
1. First Quarter Financial Results
Vertex posted Q1 total revenues of $196.6 million, up 11.1% year-over-year, driven by software subscription revenues of $167.1 million (+10.9%) and cloud revenues of $96.8 million (+20.7%). Annual recurring revenue reached $687.6 million (+11.2%), while average annual revenue per direct customer climbed to $140,464. Net revenue retention stood at 105% and gross revenue retention at 95%. GAAP net loss was $2.5 million, while non-GAAP operating income rose to $37.6 million and adjusted EBITDA increased to $44.1 million (22.4% margin).
2. Strategic Initiatives and Cost Actions
In Q1 Vertex acquired Brinta, an AI-native e-invoicing startup, to accelerate Latin America market coverage and deliver real-time compliance automation with auditability. In April the company unveiled a Value Creation Plan aimed at transforming operations through efficiency measures projected to save $60–70 million of cash spend annually beginning in 2027, enabling reinvestment in AI and long-term growth initiatives.
3. Guidance and Outlook
For Q2, Vertex forecasts revenues of $200.0–204.0 million and adjusted EBITDA of $47.0–50.0 million. Full-year 2026 guidance anticipates revenues of $823.5–831.5 million, 25% cloud revenue growth and adjusted EBITDA of $202.0–208.0 million, reflecting the impact of recent cost actions and sustained subscription demand.